July 2001 Events
July 6 President Robert Kocharian announces a change in ministerial assignments in the cabinet with Minister of  Transport and Communications Yervand Zakarian exchanging portfolios with Minister for State Revenue Andranik Manukian. The change, although linked to a broader initiative seeking to improve coordination of the ministries, reportedly stems from recent clashes between Minister Manukian and Prime Minister Andranik Markarian. State revenue has increased in recent months, mainly due to the minister's efforts to better enforce tax collection.
July 9 A report by the New York Times reveals the existence of a new unofficial Turkish-Armenian "reconciliation commission" formed at the initiative of the U.S. State Department after months of secret talks in Europe. The new 10-member commission, composed of a disparate group of Armenian, and Turkish figures, is reportedly seeking cooperation and communication to prepare for direct talks between Ankara and Yerevan at some later stage, designed to overcome the Turkish refusal to normalize diplomatic relations with Armenia and its denial of the Armenian Genocide. The six Turkish members include prominent former Turkish foreign service officials and others linked to the government and security services. The four Armenian members include Andranik Migranian, a former adviser to Russian President Boris Yeltsin, former Armenian Foreign Minister Alexander Arzoumanian, who served under the Ter Petrosian government and currently a leader of the former ruling Armenian National Movement (ANM), and Van Krikorian, of the Armenian Assembly of America.
July 9-10 A two-day international donors conference approves a new $620 million aid and assistance package for Armenia's economic reforms. The Paris conference includes officials from the United States government, the International Monetary Fund (IMF) and the World Bank, and formulates a program linked to the Kocharian government's successful implementation of its three-year poverty reduction plan. Prime Minister Markarian pledges to accelerate policies aimed at improving overall living conditions and vows to maintain the government's campaign to combat corruption throughout the country.
July 10 Arriving in Yerevan as part of a new series of regional meetings, officials from the Organization for Security and Cooperation in Europe's (OSCE) Minsk Group discuss the stalled mediation effort seeking a solution to the  Nagorno Karabagh conflict with senior Armenian leaders. The delegation is headed by the Minsk Group co-chairs, Ambassador Carey Cavanaugh from the United States, France's Ambassador Phillip de Suremain and Russia's First Deputy Foreign Minister Vyacheslav Trubnikov. The OSCE officials state that they still hope for a later meeting in Geneva between the Armenian and Azerbaijani presidents once a new acceptable framework can be formulated.
July 12 In a press conference in Yerevan, Constitutional Court Chairman Judge Gagik Harutiunian reviews recently proposed changes to the country's 1995 constitution, several of which incorporate suggested revisions advocated by the Council of Europe. Most prominent from among the several proposed amendments, the head of state would be required to secure parliamentary approval for the appointment of the prime minister and government ministers and would no loner retain the right to arbitrarily veto cabinet decisions. A related amendment would prohibit the president from exercising his right to dismiss a majority of the country's judges. Additionally, the proposals include measures aimed at safeguarding the protection of human rights, an end to capital punishment and a controversial clause eliminating the right of dual citizenship. The amendments were drafted by a special presidential commission and are subject to parliamentary approval and a subsequent national referendum.
July 13 In a move that Nobel Peace Prize laureate Elie Wiesel hailed as a "miracle," a  multi-disciplinary group from Armenia, Russia, Turkey and the United States announced  this week the establishment of the Turkish-Armenian Reconciliation Commission. The Commission, so far composed of four Armenians and six Turks, including former foreign ministers of both Armenia and Turkey, grew out of a series of confidential meetings at the Diplomatic Academy of Vienna, Austria. David Phillips, an American professor who teaches at the Academy, moderated the meetings. Phillips has a stellar background in conflict prevention and mediation, and has organized similar track two diplomatic initiatives between Serbs and Albanians, and Greeks and Turks. According to the "Terms of Reference", issued by the Commission, its main goal is "to promote mutual understanding and good will between Turks and Armenians and encourage improved relations between Armenia and Turkey." The Commission will both undertake activities directly and support other initiatives in fields as varied as "business, tourism, culture, education and research, environment, media, confidence building and other areas." It will also issue recommendations to concerned governments.
The United States government has repeatedly urged Turkey to normalize relations with Armenia. (Most recently the issue was raised by US Defense Secretary Donald Rumsfeld during his visit to Ankara.) The US is supporting the new Armenian-Turkish initiative, and the move has also been welcomed in Turkey and Armenia, but has caused irritation in Azerbaijan. The only English-language Turkish daily called the new development "an historic step for both Turks and Armenians", while an Armenian paper said the commission may provide unprecedented possibilities for normalization of relations between two neighbor countries. A Turkish daily referred to the Speaker of the Azerbaijani Parliament as saying that "the improvement of economic and cultural ties between Turkey and Armenia is something which frustrates Baku." 
The two countries have remained in a state of a virtual cold war since the re-establishment of Armenia's independence. In spite of repeated Armenian offers to establish normal relations without preconditions, Turkey has refused to do so and, in siding with Azerbaijan in the Karabagh conflict, instituted an economic blockade against Armenia and continues to provide military assistance to Azerbaijan. Turkey continues to condition the normalization of relations on the settlement of the Karabagh conflict on Azeri terms and Armenia's refusal to pursue international recognition of the Armenian Genocide. Earlier this year, however, after the European Parliament officially urged Turkey to recognize the Genocide and normalize relations with Armenia, sources in the Turkish government indicated readiness to open a channel for talks with Armenia. The idea at the time was welcomed by the Armenian government. This week, the spokeswoman for the Armenian Foreign Ministry said Armenia has always welcomed public initiatives aimed at improved Armenian-Turkish relations. However, she reiterated that public dialogue is still not a substitute for direct talks on the government level.
The commission includes the following members: former Ambassador to the United Nations in Geneva Gunduz Aktan, former Foreign Minister and chairman of the Armenian National Movement Alexander Arzoumanian, former President of Istanbul's Bogazici University Ustun Ergunder, retired Air Force General Sadi Erguvenc, former Ambassador to Syria and Professor at the Yerevan State University David Hovhannissian, Chairman of the Board of Directors of the Armenian Assembly of America and a New York lawyer Van Z. Krikorian, former Advisor to the President of Russia and member of the Union of Armenians of Russia Andranik Migranian, former Ambassador to the United Kingdom and head of an Istanbul think-tank Ozdem Sanberk, former Foreign Minister and columnist Ilter Turkmen, and Psychology Professor at the University of Virginia Vamik D. Volkan.
July 17-18 Parliamentary Chairman Armen Khachatrian resigns from the People's Party of Armenia, charging that the party leadership of Stepan Demirchian has established ties to "forces seeking to destabilize the political situation" and criticizing Demirchian for "betraying the political legacy" of his father, party founder Garen Demirchian. In response, a group of eight People's Party deputies warn Demirchian the next day to cease his attacks on party members for advocating cooperation with the government or risk splitting the party. The 117-member leadership board of the People's Party had demanded the resignation of the speaker and his deputy one week earlier.
July 19-20 Russian Deputy Prime Minister Ilya Klebanov meets with senior government officials in Yerevan to coordinate the transfer of shares in several Armenian state-owned firms to Russian control in exchange for significant reductions in Armenia's $88 million debt to Russia. The Russian official also reviews plans for the visit to Armenia by Russian President Vladimir Putin, scheduled for early fall.
July 20 Prospects for a political settlement over Nagorno Karabagh are looking bleak following international mediators' failure last week to convince Azerbaijan to return to the table. Azerbaijani Foreign Minister Vilayat Guliyev blamed Armenia's "non-constructive position" and "pro-Armenian" mediators for the impasse. He also called the agreements developed by Presidents Heydar Aliyev and Robert Kocharian in talks hosted by France and the United States earlier this year, and from which Azerbaijan subsequently backed away, an "Armenian myth." Guliyev said that Azerbaijan would restart the war, unless its demands are satisfied at the negotiating table.
Armenia's Foreign Minister Vartan Oskanian expressed surprise over Guliyev's comments. He wondered if Guliyev was completely informed about the process. In fact, observers have suggested that Guliyev may not be among the handful of individuals in the Azerbaijani President's immediate circle who are aware of the substance of talks with Armenia. Oskanian reiterated Armenia's position that Azerbaijani demands on Nagorno Karabagh lack any legal basis, and that Karabagh seceded from Azerbaijan ten years ago in accordance with Soviet laws and international norms. Oskanian added that while the Armenian party is committed to a peaceful settlement of the conflict, "any military encroachment [by Azerbaijan] will be met with a commensurate response."
The mediators will meet next week during the G-8 summit in Genoa to review options. Also next week, Aliyev and Kocharian will attend a summit of post-Soviet states in Sochi, Russia, but no substantive discussions are expected.
July 20 A high-ranking government delegation led by Russia's Deputy Prime Ilya Klebanov made a three-day visit to Armenia to discuss ways to boost bilateral economic ties. Klebanov, who together with Armenia's Defense Minister Serge Sargsian co-chairs the Russian-Armenian inter-government commission, said economic cooperation was lagging behind political ties. Klebanov visited a metallurgic plant in the south of Armenia and an electronics factory in Yerevan, in which Russians may invest. Shares in the two companies, as well as two hydro-power electricity generating facilities, could be transferred to Russia to cover most of the $88 million Armenian state debt to Russia. Russian companies already have a large presence in Armenia's energy sector. Russia is the sole supplier of nuclear and natural gas fuel that help generate over two-thirds of Armenia's electricity. Russia's gas monopoly, Gazprom, has a controlling share in the Russian-Armenian gas distribution company. The two parties also discussed plans for a Poti-Port Kavkaz ferry boat that would help promote trade between Armenia and Russia and reduce the current transportation costs.
July 21-22 President Kocharian announces the dismissal of Environment Minister Murad Muradian and the subsequent appointment of Vardan Ayvazian, the head of the Stability bloc, who relinquishes his parliamentary seat to enter the cabinet the next day. Muradian, also a member of the Stability bloc, angrily charges Kocharian with following the demands for his dismissal by a "criminal mafia" engaged in plundering the country's natural resources wealth. The allegation is supported by second fired official, former Deputy Minister for State Property Vanya Mkhitarian, who states that criminal elements have control over the country's scarce timber resources.
July 23 Security forces uncover a hidden cache of illegal weapons, including machine guns, grenades and bombs, during a raid on the local headquarters of the Armenian National Movement (ANM) in Vanadzor. A raid on a second location owned by the ANM uncovers a sizable amount of ammunition and small arms. ANM local leader Ashot Manukian is arrested in the raid.
July 23 Deputy Parliamentary Chairman Gagik Aslanian and two other deputies resign from the People's Party, reducing its total number of seats help in parliament to thirteen. These most recent defections follow Parliament Chairman Armen Khachatrian's resignation from the People's Party one week earlier. The same day, the Stability bloc renames itself the "People's Agro-Industrial Union" and names Hmayak Hovannisian as its new chairman to replace newly appointed Environment Minister Vardan Ayvazian. With two former People's Party deputies joining this new bloc, the People's Agro-Industrial union now holds 11 parliamentary seats.
July 24 Foreign Minister Vardan Oskanian issues a statement claiming that although he was aware of plans to form a private Turkish-Armenian Reconciliation Commission, he was not directly involved in the group's formation earlier this month. Former foreign minister and leader of the former ruling Armenian National Movement (ANM), Alexander Arzoumanian, contradicts that report by stating that it was the Armenian government that urged him to join the group.
July 26-27 A delegation of officials, led by Lt. General Panagiotis Harvalas, from the North Atlantic Treaty Organization (NATO) meets with Armenian officials during a visit to Yerevan. The NATO delegation reviews plans for Armenia to host NATO military exercises in 2003 and discusses expanding Armenian participation in NATO's Partnership for Peace Program.
July 27 The three deputies comprising the opposition National Democratic Union's (NDU) parliamentary bloc, vote to remove NDU Chairman and former presidential candidate Vazgen Manukian as leader of the bloc. The three NDU deputies have clashed with Manukian's leadership over the party's position against cooperation with the president, a policy advocated by the deputies. The move against Manukian is attributed to Minister for State Property David Vartanian, a rival to the party chairman within the NDU. Although nominally still head of the NDU, Manukian's hopes for his widely expected presidential bid in 2003 now seem doubtful. Manukian served as Prime Minister from 1990-1991 and also as Defense Minister from 1992-1993.
July 27 The government's most recent amended version of the controversial privatization legislation for the sale of the country's energy distribution network is passed by a narrow vote in parliament. The adopted legislation removes an earlier restriction imposing a ban on an owner of a distribution network that also holds at least a 25 percent stake in a power generating firm. The new law also contains revised stipulations whereby a bidder may now hold a controlling share in all four of the national distribution networks. Earlier versions imposed a restriction on bidders limiting them to holding controlling shares in only two of the four firms. The close vote is marred by allegations that several pro-Kocharian deputies illegally voted more than once.
Reprinted, by permission, from Armenian Assembly of AmericaArmenian International Magazine , Armenian National Committee of America , Armenian National Institute ,Groong. Armenian News Network  
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